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Agreements Not to Sue Are Automatically Unconscionable

2023.3.25 by.若の屋

Agreements not to sue, or waivers of liability, are commonly used in contracts to protect businesses from legal action. However, in some cases, these agreements may be deemed unconscionable and unenforceable in court.

Unconscionability refers to an agreement that is so one-sided in favor of the party with more power that it is considered unfair or unreasonable. In the context of waivers of liability, unconscionability may arise when the person signing the agreement has little bargaining power and is forced to waive their legal rights without fully understanding the consequences.

Courts have recognized that certain types of agreements not to sue are automatically unconscionable. For example, waivers of liability in employment contracts that seek to bar employees from suing for discrimination or harassment are generally unenforceable. This is because employees have a right to a workplace free from discrimination and harassment, and it is against public policy to allow employers to avoid liability for these types of claims.

Similarly, waivers of liability in consumer contracts may also be deemed unconscionable. Consumers often have little bargaining power and may be forced to sign these agreements in order to access goods or services. Courts may declare these waivers unenforceable if they are buried in the fine print of a contract or if the language used is confusing or misleading.

In addition, waivers of liability that seek to prevent someone from suing for personal injury or wrongful death may also be considered unconscionable. These types of agreements are often used in high-risk activities like skydiving or bungee jumping. While participants assume some level of risk in these activities, it is against public policy to allow operators to avoid all liability for injuries or deaths that occur due to their negligence.

It`s important to note that not all agreements not to sue are automatically unconscionable. In some cases, these waivers may be enforceable if they meet certain criteria. For example, waivers of liability that are clearly written, easily understandable, and not buried in the fine print may be enforceable.

Overall, agreements not to sue are a common tool used by businesses to protect themselves from legal action. However, if these waivers are deemed unconscionable, they may be unenforceable in court. It`s important for both businesses and individuals to understand the legal implications of these agreements and work with a qualified attorney to ensure they are fair and enforceable.